Big Tech companies such as Google, Apple and Microsoft have yet to encroach on the investment funds industry, but new research from distribution network Calastone suggests they would have a ready market from young millennials.
The study, which surveyed 3000 people aged 23-35 across the UK, France, Germany, US, Hong Kong and Australia, reveals that half of millennials would, if it was offered, purchase investment products through a well-known technology company. Moreover, for millennials who already actively invest, this figure rises to almost two thirds (63%) globally.
As well as placing trust in Big Tech companies, millennial investors in the UK also place a significant degree of faith in technology itself, with 52% stating that they would trust a computer algorithm to invest their money for them.
Andrew Tomlinson, chief marketing officer at Calastone comments: “Many Big Techs already offer basic financial products and in Asia we’ve already seen Alibaba’s, Ant Financial, entering the investment funds market and in doing so attracting a huge investor base to creating the world’s largest money market fund.
“Given the opportunity for these companies and the scale of their client base, other markets could follow. The industry should look at what makes these Big Techs so successful – accessibility with a positive user experience – and learn from that if it is to navigate the coming changes.”